Saraya Aqaba Real Estate Development PSC announced the successful closing of its equity private placement for a total amount of JD 85 million (US $120 million). One of the largest offerings of its kind in the history of the Jordanian capital market, the placement will increase Saraya Aqaba’s paid-up capital to the target of JD 257 million (US $362 million), from its initial capitalization of JD 172 million (US $242 million).

Saraya Aqaba issued 85,000,000 common shares at a price of JD 1.000 per share. The private placement was lead managed by Atlas Investment Group, member of the Arab Bank Group. As the placement was over-subscribed, Saraya Aqaba is considering the possibility of increasing the size of the placement to cover its expansion plans. Subscription commitments were received from diverse regional and international investors, with a breakdown of 92% from companies and investment funds and 8% from high net worth individuals.

"We are extremely pleased with the results of the private placement and the interest generated amongst prominent local and international individual and institutional investors, resulting in the placement receiving subscriptions from 11 countries around the world", said Mr. Ali Kolaghassi, Vice Chairman of Saraya Aqaba. Subscriptions were received from Jordan, Lebanon, Palestine, Libya, Iraq, Saudi Arabia, UAE, British Isles, British Virgin Islands, Bermuda and the USA.

Furthermore, Mr. Ali Kolaghassi announced that the construction of the Saraya Aqaba project on the northern shores of the Gulf of Aqaba, southern of Jordan, will commence before the end of the year. The Project is estimated to cost over US $600 million and will be delivered over the next three years, with completion scheduled for January 2009.